Hi all,
Not sure if I'm in the right forum but wanted some advice about a potential investment. My husband and I purchased our first home in 2004 for around $250K a 3 bedroom townhouse about 7km from the city in Adelaide.  We've since had a baby and I've had 12months off work and will be returning in a months time part-time.  I recently came across a great property in Aldgate in the Adelaide hills and are seriously considering putting an offer on the place and keeping our townhouse as an investment…here comes the question….is now a good time to be purchasing a larger property given the economic conditions? The property was last sold in 2006 for 370K and has had about 50K of improvments done, they are asking 495-510 for the property so it is a substantial increase in debt for us but we have approval to borrow up to 510K for the new property as our townhouse has incrased in value since we bought it.  I guess I'm unsure about taking on more debt with everything going on in the world but am also thinking now could be a good time to get a good value property (3bedroom + study on 1/2 acre block) and borrow while interest rate are low.  Any thoughts, advice about starting out investing and upsizing the house you live in would be greatly appreciated.